An investor is planning to invest in three unit trusts. She plans to invest 50% of her savings in an equity fund, 40% of her savings in a bond fund and the remainder in a cash fund. (A cash fund invests in long term deposits.) The return on the equity fund, , follows a normal distribution, ~Normal(3%,9%%). The return on the bond fund, , follows a normal distribution, ~Normal(2%,4%%). The correlation coefficient of the return of the equity and bond funds is 0.25. The return on the cash fund, , is a constant 1%. Calculate the expected return and variance of the portfolio. Work in terms of % (not decimals). If the investors sole intent is to maximise her long-term average return, what should she do? Explain your answer. If the investors sole intent is to minimise her risk, what should she do? Explain your answer.